Brown Enterprises’ bonds currently sell for $1,025. They have a 9-year maturity, an annual coupon of $80, and a par value of $1,000. What is their current yield?

Question

Brown Enterprises’ bonds currently sell for $1,025.  They have a 9-year maturity, an annual coupon of $80, and a par value of $1,000.  What is their current yield? 
        7.80% 
        7.90% 
        9.00% 
        9.10% 
        9.20%

Jeff · Answer

7.90%

david · Answer

Adams Enterprises’ noncallable bonds currently sell for $1,120. They have a 15- year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity?